NGO's, PAC's, and types of trade Essay

Submitted By razor422
Words: 1277
Pages: 6

Globalization has had an impact on many aspects of our country. Our culture, educational standards, politics, and economic policies have all changed as a result of influence from other nations, and our deeply rooted need to compete. No other topic, however, is more important than that of the changes we have experienced in trade. As the United States has become a key player in the trade industry over the centuries, we have seen our policies towards trade and our methods of carrying it out change. This is to accommodate fluctuating demands for different products, relocation of factories and businesses, shifting of world economies, and many other factors of the economic policy. Trade policy in the U.S. is a controversial and frequently discussed topic, those reasons being its effects on our nation, other nations, and the overall conditions workers experience around the world. The two main types of trade are fair trade and free trade. These exist on opposite ends of a spectrum, much similar to that of the political spectrum. They are both ideas. Fair trade focuses on the overall quality of the goods, the conditions of the factories producing the goods (ie working conditions, minimum wage, workplace hazards, etc.), as well as the relations between the nations. A fair trade nation is a little more conservative in the amount of trading it does, as the government has the right to place “tariffs”, or an import tax on incoming goods. These built in expenses make it more profitable for businesses to produce goods within the nation they plan to sell them in. This avoids import tax thus increasing sales due to the lower price, as well as provides local jobs to factory workers, boosting overall economy. Fair trade nations would typically be more self reliant, having more, quality jobs within their nation. The other end of the spectrum, free trade, is much different. Fair trade focuses of the quantity of the product rather than its overall quality. This method adopts a more “laissez faire” approach, as the government loses its rights to regulate business practice, as well as place import taxes on incoming products, implace embargos, enforce a minimum wage, and more. Generally businesses make more money in these societies, as they have to abide by no minimum wage, workplace hazard restrictions, worker benefits, and other costly practices. This ideal relies on ”trickle down economics” to provide for the working individual, in hopes that as companies make more money they will be able to afford to pay employees more. Nations under this ideal see a great more deal of imports as well as exports, working what is easy to sell rather than what's easy to produce. One could assume now that the individual product here loses value as its quality is not regulated, but with this is an expected price drop. Businesses will export and import more, as they will not have to pay any taxes for these practices, and factories will move to locations where less restriction in emplaced on the business. These areas will see job increases. Workers now have the ability to chose from jobs, and in order to market their jobs businesses will need to offer higher wages, better workplace environment, benefits and more. However, they are not required to, and because we live in an imperfect society, these ideals fail in modern societies. Each of these two beliefs carry many followers as well as nations that practice them. In the U.S. many different groups support them and back politicians that that practice these policies, in favor of their own views. Political Action Committees (PAC) fund politicians who share the views they have, or fund politicians to oppose their political enemies. They send lobbyists to congress to propose bills and are very large influences in the economy of the U.S.. Non Government Organizations(NGO) are similar, but operate less like a company. They are non profit organizations that back single ideals rather than specific rights or single…